The United States and Iran have reportedly reached a tentative agreement to extend the current ceasefire and commence new negotiations regarding Tehran's nuclear programme, according to a report from Axios. Citing two US officials and a regional source involved in the discussions, the news outlet stated that the two countries have agreed to a 60-day memorandum of understanding. However, President Donald Trump has yet to give his final approval, leaving the deal in a state of uncertainty.
There has been no immediate official confirmation of the report, which nonetheless prompted oil prices to reverse their earlier gains and trade lower. Trump has repeatedly asserted that the end of the war is near, but during a cabinet meeting on Wednesday, he expressed dissatisfaction with the ongoing negotiations and clarified that the US is not discussing the easing of sanctions—a key demand from Iran.
Key Terms of the Agreement
Under the terms of the memorandum, navigation in the Strait of Hormuz will remain unrestricted, meaning no tolls or forms of harassment will be permitted. Iran is required to remove all mines present in the strait within thirty days, while the American naval blockade will be lifted gradually, according to the two officials. The memorandum also includes Iran's commitment not to seek to acquire nuclear weapons.
Discussions over the next sixty days will primarily focus on Iran's enriched uranium stockpile and its overall enrichment capabilities. Additionally, the US has agreed to open discussions on easing sanctions and unfreezing Iranian financial assets held abroad, though these talks are contingent on the final approval from President Trump, as per Axios.
Context and Recent Developments
The report emerges shortly after Iran targeted a US air base in Kuwait in response to American strikes on what Washington described as an Iranian drone operation. The war, which began on February 28 and has engulfed the Middle East, has seen a fragile ceasefire in place since April 8. Iran has maintained tight control over the strategic Strait of Hormuz—a vital global energy conduit—while the US imposed a naval blockade on Iranian ports and coasts starting April 13.
On Monday, US forces conducted what the Pentagon termed defensive strikes on missile launch sites and mine-laying boats in southern Iran. The US stated it acted with restraint given the weekslong ceasefire, while Iran condemned the action as a sign of bad faith and unreliability. The conflict has sparked concerns that it could trigger a global financial crisis, as warned by the European Central Bank. Tehran's decision to effectively close the Strait of Hormuz to ships carrying regional oil, natural gas, and other critical supplies has been a focal point of global concern and economic disruption.
